How to Manage Money in a House Share

House shares are a popular accommodation option amongst students and there are many advantages that come with sharing a house with others. House shares allow you to live with friends and save money at the same time, as they are usually cheaper than renting alone.

Whilst sharing a house is a great way to save a bit of cash, it’s important to learn how to manage the household finances, so you can have a successful house sharing experience and avoid any fall outs with your housemates.

Current account and prepaid MasterCard providers, icount, have generously offered their best tips to help you successfully manage your money for when you’re sharing a house with other people.

Make sure you only pay what you can afford

Before you enter a house share, ensure you only agree to a house that you can afford.

If you’re sharing a house with friends, make sure you’re looking for houses that are within your price range, and try not to rush into any contracts.

It can be tempting to sign a contract for the first house you like, especially with student housing. However, this may not be the most cost-effective option and if you can’t afford the rent payments, this could leave you in a complicated situation.

Make sure everyone contributes

Whether you’re sharing a house with friends or someone new, it’s important to outline what each member of the house needs to pay, from the start.

This can be achieved by using a bill-splitting service which combines core bills, such as water, gas and electricity and the TV license into one monthly payment. This splits household bills up equally and ensures everyone pays the same amount.

Making sure everyone contributes is especially important when it comes to rent. There can be severe consequences if rent goes unpaid, so it’s vital that everyone agrees to pay their share and on time.

Chip in for household goods

Once bills and rent are out of the way, it’s time to think about household goods.

It’s usually worth splitting the cost of inexpensive household items that all housemates use. This can vary from cleaning products to tea and coffee, and means you don’t have to dispute who paid for what.

With larger expenses such as a TV or microwave, these are best paid for separately. This is because when it comes to the end of the tenancy, there will be no debate as to who gets to take the items home.

Prioritise your bills

All bills are important and should be paid on time, however if you’re experiencing temporary cash flow issues, there are some bills that you should prioritise.

Rent, council tax and the TV license should be paid first as these have more immediate legal consequences if payment is delayed. Whereas other bills such as TV subscriptions and water bills will simply result in a loss of services if they go unpaid.

If you’re ever struggling to pay rent or bills on time, always speak to your service providers and landlord first to see what can be done.